7 Best Zinc Stocks to Buy According to Hedge Funds

5. Southern Copper Corporation (NYSE:SCCO)

Number of Hedge Fund Holders: 33

Southern Copper Corporation (NYSE:SCCO) is a world-renowned mining company, and its major zinc-producing assets include the Charcas, San Martín, and Santa Bárbara mines in Mexico. Additionally, Southern Copper runs a zinc refinery, strengthening its role in the global zinc supply chain through combined mining, smelting, refining, and production activities.

In the year ended December 31, 2024, Southern Copper Corporation (NYSE:SCCO)’s stellar performance led to record net sales of $11.43 billion, a 15.5% increase from the previous year. This was influenced by higher sales volumes and stronger metal prices. Zinc production increased 98.5% year-over-year to 130,011 tons due to the full ramp-up of the Buenavista Zinc concentrator. Zinc sales also increased by 44.6% to 144,139 tons, contributing to a 39.2% increase in net income to $3.38 billion, while adjusted EBITDA rose 27.4% to $6.41 billion, maintaining a strong 56% margin.

Going forward, Southern Copper Corporation (NYSE:SCCO) is proceeding with a $15 billion investment plan. This will include the El Pilar copper project in Mexico, which will produce 36,000 tons annually using the solvent extraction and electrowinning (SX-EW) technique. Modernization initiatives at Minera Mexico further aim to improve efficiency and sustainability, guaranteeing sustained production growth over the long term.

Southern Copper Corporation (NYSE:SCCO) projects a 32% increase in zinc output in 2025, with ongoing improvements, reaching 171,700 tons. The expansion of its resource base and enhanced cost efficiencies position Southern Copper Corporation as a premier investment option in the zinc industry.